As of February 1, 2012 the ESB will be introducing a new low usage standing charge which will apply to all households who use on average less than 2 units or less in any billing period which is typically 61 days. However, this charge will not apply to customers who may be in receipt of the DSP’s free electricity allowance or who are on their household budget plan pay as you go meters. The ESB expect that this increased standing charge will only affect vacant or empty households.
For those of you who are low usage customers the price increase will equate to 15.5 cents more per day on the normal standing charge. The hike seems nominal at the outset but realistically how long will it remain at 15.5 cents per day? It also appears that the ESB will penalise you if your house is vacant due to hospitalisation or when you head off on vacation.
In justifying this increase in the standing charge the ESB are saying that this hike is to help them recover the costs of providing electricity to customers who may have very low consumption. It will also help them recover the costs of meter reading, network maintenance and the supply costs of servicing accounts.
The question is how can this price hike be justified? Does it cost more to maintain the network, read the meter, or service the account to one low usage residence than it does to the other 30 high usage residences on the same road? Or is this just an excuse to screw more money out of already hard pressed homeowners?
I wonder what Pat the Rabbit will have to say about this increase in the standing charge for low usage customers. Do the other energy providers have a similar low usage standing charge, and if not how long will it take them to come up with a similar price hike? Low usage standing charges are not unique to energy providers however. In the waste collection business for example, companies like Greenstar can levy their customers with an increased monthly standing charge and/or an increased per lift charge if they fail to put their general waste bin out for collection every month.
Low user standing charge | Electric Ireland



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